Spain's Basque Region Launches €120 Million Clean Heating and Cooling Subsidy

en.Wedoany.com Reported - On October 27, the Government of the Basque Autonomous Community of Spain officially launched the "Eguzki Hotz" clean heating and cooling subsidy program with a total scale of €120 million, supporting the installation of renewable energy heating and cooling systems in residential buildings, industrial enterprises, and public buildings. Among them, geothermal heating and cooling systems can receive subsidies of up to 45% of eligible project costs, and air-source heat pump systems up to 30%. The program is implemented by the Basque Energy Agency, and the application channel is scheduled to open on November 5.

The new subsidy program covers single-family homes, medical institutions, educational facilities, industrial enterprises, service-sector companies, and commercial facilities. Eligible recipients include renewable energy generation facilities, energy storage equipment, and clean heating and cooling systems, supporting buildings in using renewable energy electricity to supply heating and cooling equipment.

According to the subsidy standards published by the Basque Autonomous Community Government, residential solar photovoltaic facilities can receive up to 55% of cost subsidies. Corporate photovoltaic projects receive differentiated support based on enterprise size: large enterprises up to 25%, medium-sized enterprises up to 30%, and small enterprises up to 45%. Clean heating and cooling equipment subsidy ratios are set according to technology type, with geothermal systems up to 45% and air-source heat pump systems up to 30%.

The program combines heating and cooling equipment with renewable energy generation facilities. Under the general rules published by the government, newly installed heating and cooling equipment must in principle be linked to self-owned renewable energy generation sources. Eligible power sources include building self-consumption generation facilities, citizen energy communities, and renewable energy communities, and related projects may be equipped with battery energy storage facilities.

Subsidy applications will be accepted starting November 5, 2026, and will close when funds are exhausted, with the latest application deadline being September 29, 2028. Approved projects must in principle complete implementation verification and submit relevant materials within 18 months after the funding decision notification, with the final deadline no later than October 31, 2029.

For enterprises engaged in economic activities and other applicants, the government requires applications to be submitted before starting the funded project or making a binding implementation commitment. For beneficiaries not engaged in economic activities, the government allows implementation commitments, accepted quotations, orders, contracts, invoices, and payment records formed on or after January 1, 2026, subject to eligibility under the subsidy regulations.

The program is part of the Basque Autonomous Community Government's €340 million climate change response measures. The €120 million is the overall program funding for Eguzki Hotz, covering multiple categories of facilities including renewable energy generation, energy storage, and clean heating and cooling, and is not a dedicated budget allocated solely to geothermal projects.